In cases where initial-step mediation does not result in an agreement, the mediation
hearing shall be continued to a second-step mediation. A second-step mediation hearing
may be set at the discretion of the director or his designee in any other case following
informal consultation. The director or designee shall assign three panel members for
such hearing. The assigned members shall include one landlord, one tenant, and one
neutral party. If the parties reach agreement at such hearing, the mediation shall
be terminated, and the terms of such agreement may be stated in writing and signed
by the parties. Copies of such agreement shall be retained in the case file by the
department. If no agreement is reached in a second-step mediation hearing, the mediation
process shall terminate, and the mediators shall, within seven days after termination
of the hearing, file with the department a brief report summarizing the mediation
hearing. Such report shall be served upon all parties to the hearing upon request.
